Fair deal

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Fair deal
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Fair deal is a deal that has fair market value. A fair market value means that assessment was done through objective criteria. To be sure criteria are deifinied objectively, there are two ways of tactics[1]:

  1. Working together with other parties and identifying together objective criteria, then reaching the agreement how much these criteria are going to be fullfilled in ongoing negotiations,
  2. Multiple market valuations is second tactic, it is assessing situation on many markets and defining criteria based on them, then starting negotiations.

Fair deal is basic assumption of Fair Trade[2]. When an employee feels that he receives fair deal, it is more probable he will perform above minimum expectations[3]. During negotiations fair deal might be perspected as win-win situation[4].

Fair deal failures

Fair deal and negotiations itself might not be reached due to two main scenarios[5]:

  1. Exercising power tactics. First scenario is that the negotiator does not believe in claims of counterpart and there is no willigness to increase the offer or reduce demands. Here there is big risk of impasse which will not finalise the deal fairly.
  2. Pragmatic (relationship) approach. Due to concerns about loosing reputation, relationship, some performance or moral discomfort negotiations are made in soft way. Here values of arguments from both sides might not be used, so risk of failure is achieving fair deal is also considered.

In the core of fair deal stays assumption of social concept of cooperation. For example, that the negotiator takes perspective of second party into account. In the opposite of fair deal stays the individual rationality - the negotiator is focused only on reaching his goal. When negotiator focuses only on his individual arguments, not letting negotiations to start, he risks impasse and eventually reaching any deal. Korobkin R. presents research of emotional background of negotiations when respondents were greatly refusing deals perspected as not fair. Moreover, they still refused them, even if that decision was costly for them. The point which means that negotiations are unfair is when one of parties is using lie. Although, definition of unfair negotiations is quite easy to describe, definition of fairness is much more complex as it depends on culture, sense of morality or opinions of negotiators.

Author: Dominika Zaich


  1. Sirgy M. J. (2014) p. 158
  2. Krier J-M., (2007)
  3. Levine D. I. (2002) p. 13
  4. Galluccio M. (2014), p.409
  5. Korobkin R. (2014), chapter 6